The controversial truck ban in the city of Manila can take a heavy toll on the Philippine economy in terms of lost profits and displaced workers in the manufacturing sector, according to a macro research done by Citibank.
The city’s new policy bans eight wheeler trucks and vehicles with a gross weight of about 4,500 kg from plying Manila’s streets between 5 am and 9 pm in order to ease traffic in Manila as work begins on key toll road projects.
As a concession, the city government agreed to extend the window for trucks to between 10 am and 3 pm, but this is only for a period of six to eight months.
The Citibank reports that the truck ban would cost the Philippine economy up to P320 billion in lost revenues and put at risk about a million manufacturing jobs without an alternative linkage between the economic zones in the Cavite-Rizal-Quezon (Calabarzon) area and the port of Manila.
Citi Economist for the Philippines Jun Trinidad said the transportation bottleneck resulting from the truck ban could shave from one to five percent off the country’s gross domestic product (GDP) mostly affecting non-technology export commodities.
Meanwhile, Rosario, Cavite Mayor Jose Ricafrente said in an interview that the impact of the truck ban on the enterprises located in the CaviteExport Processing Zone (CEPZ) may cause many workers to lose their jobs if the profitability of the companies goes down. “I can’t estimate the exact figures but it’s highly probable that billions of pesos can be lost daily by the CEPZ.” He added that ultimately, the entire province of Cavite may be adversely affected.
There are many foreign investors in Cavite, Ricafrente added . “Most of them have formed communities here. As a result, they affect the economy of many business establishments here like restaurants, banks, hotels, residential and commercial houses, gasoline stations, resorts, telecommunications, water and electricity providers. So the truck ban … can produce a damaging chain reaction affecting many sectors.”
It was found out that the truck ban could have been stopped.
Land Transportation and Regulatory Board (LTFRB) Chairman Winston Ginez, in an interview, said that the LTFRB has the power to issue a temporary restraining order or preliminary injunction on the truck ban, except that no one filed a complaint.
Under Executive Order 202, which created the LTFRB, the board is empowered “to issue preliminary or permanent injunctions, whether prohibitory or mandatory, in all cases in which it has jurisdiction, and in which cases the pertinent provisions of the Rules of Court shall apply.”
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